Not sure whether this is the right place for this post.
Having just received my quarterly edition of (Holiday Which) I came across this topic .
Headed by Misleading Adverts, it is saying the price you see must now be the price you pay.
Companies who advertise cheap holidays or flights without including all the charges could be taken to court for misleading customers.
The office of fair trading says tougher action will be taken against companies that bump up the price of holidays with hidden charges - in brochures or on the internet - a move that means no frills airlines will need to show the full price of a ticket upfront.
The Association of British Travel Agents has also backed the new pricing regulations and has pledged to remind its members that all fixed, non optional costs must be included in the advertised price.
Holiday Which believes in transparent pricing and welcomes the new measures which means consumers will find it easier to compare the price of flights and package holidays.
Companies have until this month to clean up their act or face being taken to court. They say if you come across companies flouting the rules please let them know. I assume this means reporting it to the consumer association (Which Magazine) Cheers Jayjan
It would be very simple to price holidays in a transparent way - just needs the willpower - if not then there will be legislation.
Slowly the loopholes are being closed.
fwh
I agree FWH but at least its starter, and hope it stops all these hidden charges we all confront when booking a holiday. You can go on eg: fly zb.com, Jet2.com and numerous other flight only websites with a very attractive price only to be let down with a final price of taxes taxes taxes which can double the price. The under occupancy thing is another way of making fast money, and I hope it does include this within the flouting rules. Cheers Jayjan
i heard this mentioned on the radio a few months back and i think its an excellent idea , it really does drive me crazy when i get what i think is a good price only to find about 3-4 different charges are added on top and different companies charge different charges some of the time, the only thing i dont mind is the meal supplement as not everyone wants plane meals
Did any one watch the B*** S**** detective on BBC 3? He saw a holiday for 99.00, so he went in and said he wanted to book it, when all the extras were added on, it came to much more, - It showed him sitting there for over an hour arguing that he wanted the holiday for the price, it was advertised at ,and he wasn't backing down! - eventually after much discussion, they offered him it for 103.00! . He still refused - quiet entertaining it was!
Whilst I agree and think it is long overdue, it does not tackle the supplements that keep being added on for under occupancy.
A couple of years ago I started a thread on this subject after I had returned from holiday.
On the back of the accommodation door was the room tariff priced at say £40 per room per night. The room slept 4 people ie 2 bed settee's as well as 2 beds. The tour operators must have been raking it in when they charge for eg. 2 people say £30 each per room per night then have the cheek to add on under occupancy for the 2 bed settee's. But I suppose this is where they make their profit. However, this is also why a lot of people are now doing DIY.
This is definitely why I always do DIY when self-catering. I often go away with a friend and whilst we are good friends one of the reasons why we do enjoy our holidays together is that we do like a bit of privacy and being able to escape each other. A DIY on a 2 bed-apartment always works out cheaper than paying the extortionate under-occupancy supplements with TOs who seem to think that they ought to be able to cram 6 people in and charge you a fortune if you don't want to!
If that xxx number of people is not reached, there is no other way but to charge extra for this. Similar to when the xxx is overreached, a discount is usally given for the overoccupancy.
And what happens to weekend flights that are quite often surcharged? Is that going to stop? What about those extras that consumers want, such as upgraded flights, meals, transfers?
The Which quote
it is saying the price you see must now be the price you pay
might be easier said than achieved.
Mark
The fact you may feel short changed when you find out the price they are paying is only part of it. If they contract and pay to use a place for x weeks and only achieve 50% utilisation then they do need to make up the shortfall in income.
They do have an infrastructure that needs to be paid for. Yes I know that many of you are not happy with the reps, customer relations etc but that is poor management on their behalf. If they got their act together they could make more profit. But the problem is because it works and they are making money they become blind to the real possibilities.
I have worked for companies that have not been making money. My job often was to turn that round so I looked for where things were failing and tried to rectify them. All too often having turned it round I also ran into the problem that management became complacent and would not go that step further. There are more than the TOs wh cannot get their act together.
Greater transparency and simpler pricing policies would resolve many of the problems they are now having. It is not the price you pay that is the problem; it is the way that they go about it. Recent examples of 2 adults and 2 kids costing more than 4 adults in the same accommodation only demonstrate the lack of understanding of the KISS principle - Keep It Simple Stupid.
Yes we know we have to pay taxes that they have no control over, and we accept that.
Advertising and charging you £100 for something is one thing. Advertising it at £25 and adding £75 in taxes when you book it is wrong. Far better that they advertise and charge you £100 and then use the fact that they could do it for £25 if it was not for the taxes would be a far better ploy.
The result is the same but if they put a positive spin on it then the blame can be shifted to where it belongs.
fwh
At least now they won't have to overcome the barrier of justifying the cost of the taxes service charges fuel supplements etc. to a customer when they come to giving a final price as they are already in the advertised price.
I think that the extras that you have no control over e.g. fuel suuplement, air passenger duty, airport taxes etc should be shown as part of the advertised price.
When advertising studios or apartments, I think it's slightly different as the price will differ depending on the party size - I'm not getting into the rights or wrongs of Tour Operators charging per person here.
Maybe advertisers could quote a price per person based on 4 sharing and 2 sharing - but still including those unavoidable extras.
Polly
There is nothing stopping you from renting a house or a car that accommodates more than one person. When it comes to paying then it is a simple matter to share the cost between the people who occupy that space. Yes a very simplistic idea but valid.
If a TO advertises a property then a base price could be shown including fares and other charges.
Let us say the property price is £100 for a week. Fares and other charges are another £100.- Servicing is included in the original price but could be extra say £10 for each additional person. The holiday could be sold at £200 for one and an additional £110 for each extra person. It is simple to do so why they have to make it complicated I cannot understand.
The property price is fixed. The fares and incidentals are fixed. The additional service costs are fixed. Decent profits can be built in to each element without any problems.
The result would be more business because of the transparency.
It is really case of willpower on behalf of the TOs. The example I give applies in the DIY market so why do they not emulate it.
When I was in business if I came across a good idea I adopted it. The fact it was a competitor who came up with it originally did not matter.
fwh
One thing which annoys me is the fact that we always have to pay a supplement to fly from say Manchester than if we were going from Gatwick. Is this another way of profiteering from the consumer or do the airlines have to pay more to the airport authorities in Manchester than Gatwick.
Another point is regarding underoccupancy supplements. I think it is probably a way of subsidising famillies who are getting free child places. Fine when our children were young but not now we are just a couple!!!!
(Sorry famillies!) Actually we could not aford to go abroad when our children were young.
Regards, Jean
TC are currently advertisinh holidays for 39 pounds yet when I price it up it works out at about 200 each! I agree that the compulsary charges should be added to the price. Thomson appear to be the only company that show the real price upfront
This is with Thomas Cook.
It doesn't say anything about under occupancy charges - but it's still a big step forward.
Polly
My only experience was renting one for myself.
I spent several weeks doing research to fins out what was involved. I then put forward a business plan and slogan. The Price You see Is The Price You Pay. Everybody else quoted a basic price to which taxes and extras were added.
I made a lot of money and when the opposition realised that my policy worked better than theirs they adopted it.
The holiday business is the same. We go with a small TO who publishes a price. The only extra is the transfer and that is made clear - Bold Print.
When I did my research everyone said they wanted to know up front what it was going to cost. They did not want to small print.
Holidaymakers are the same.
fwh
First Choice and Eclipse online always give the total cost for the whole party it's an easy to use site, I have booked many holidays with them because of their pricing method, easy and no added costs
whilst I agree that these sites do give you the final price for the whole of your party, I think the main point of this thread is that the prices initally quoted on the websites and Travel Agent shops are NOT the final price you pay.
For example, First Choice are advertising 2 weeks in Cozumel FROM £569 per person based on 2 sharing.
You may expect to pay £1138.
However, when you work through the site, choosing that particular accommodation for 2 people, the final price total is £1325.20 - which is £187.20 more than the original advertised price.
This is exactly what High Street Travel Agents do when advertising holidays, then when you get into the shop you find that there are additional costs for fuel surcharge, air passenger duty etc.
Polly
I, too, am sick and tired of only getting the final price on the last page, with the taxes etc. frequently being more than the lead price. Even more annoying in my view is when they try to charge for meals which are actually provided free. I fly frequently to Tunisia from Stansted, and the only flights on this route are with Nouvelair Tunisie which provides meals, however, Airtours, My Travel and Panorama, who use this airline try to charge £12 for meals. They also kindly offer a transfer for an exorbitant sum, whereas you can get a taxi for considerably less than £10!
Is it me? Or has the world gone mad?
And don't get me started on MyTravel's website which gives different prices for exactly the same holiday with the same company...
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